Allbirds, H&M, Zara Use Patagonia-Backed Circa’s Recycled Yarn

The fashion industry, notorious for its “fast fashion” model, faces increasing scrutiny over its environmental impact. From excessive water consumption to high carbon emissions and the proliferation of microplastics and textile waste, the industry is a significant contributor to global pollution.

While the rise of thrifting signals a shift towards more sustainable consumption, true circularity through recycling old clothing into new garments remains a complex challenge. The industry accounts for a substantial percentage of global greenhouse gas emissions, estimates ranging from 4% to 10%, according to various organizations. Alarmingly, less than 1% of discarded clothing is currently recycled into new garments.

The primary impediment to widespread textile recycling lies in the prevalence of blended fabrics. These blends require sophisticated technologies to separate them into their original components for reuse, a process that has historically proven difficult and often resulted in the degradation of at least one fiber. The inability to efficiently recycle blends significantly hinders the transition to a circular fashion economy.

However, a Virginia-based startup, Circ, is emerging as a key player in addressing this challenge, aiming to revolutionize the industry by closing the loop and transforming the linear “take-make-dispose” model into a truly circular system. The company’s approach has attracted considerable attention and investment, positioning it as a potential disruptor in the sustainable fashion space.

Founded in 2011, Circ has developed a proprietary technology that effectively separates polycotton blends – one of the most common fabric types – into their constituent parts, yielding new, virgin-quality polyester and cotton. Unlike previous methods that often compromised the integrity of one or both fibers, Circ’s process preserves the quality of both, ensuring they can be reintroduced into the supply chain without degradation.

“It’s a chemical process akin to ‘unbaking a cake,'” explains Circ CEO Peter Majeranowski. “We break down the polyester into its fundamental building blocks, separate it from the cotton, and then deliver those building blocks back to the beginning of the supply chain, ready to be remade into new clothes.” This proprietary process utilizes hydrothermal technology.

Polyester and cotton dominate the global textile market, accounting for approximately 77% of all fabrics produced worldwide. Circ’s hydrothermal technology is uniquely capable of recycling both fibers, regardless of blend ratio, addressing a significant bottleneck in textile recycling.

“We focus on materials that lack the potential to be thrifted, repaired or resold,” Majeranowski notes. “Our intake are clothing destined for landfills or incineration, representing a critical gap in recycling management.”

Circ sources used clothing from a variety of places, including direct purchases and donations. Following fiber breakdown, they offer the materials to yarn spinners, dye houses, and fabric manufacturers. Fashion brands such as Allbirds, Zara, and H&M have integrated Circ-recycled textiles into portions of their collections, highlighting the product’s acceptance. While there is a modest cost increase, brands such as Patagonia view the material as an important investment.

According to Matthew Dwyer, Vice President of Global Product Footprint at Patagonia, prioritizing polycotton is critical to them. His company has also invested in Circ’s product.

Dwyer notes that initial higher price is expected from advanced innovation. He feels it is essential that partners are also prepared to sustain and scale from there. “There’s no value in creating concept cars if you’re trying to save the planet,” he said, in reference to their shared aim.

To date, Circ has secured a total of $100 million in funding from prominent investors including Patagonia, Temasek, Taranis, Marubeni, Inditex (the parent company of Zara), and Breakthrough Energy Ventures, demonstrating considerable confidence in the company’s potential.

The startup is based in Danville, Virginia, a location historically significant as the home of the largest textile mill in the United States. Circ is now pursuing global expansion strategies, starting with the development of the company’s first industrial-scale textile-to-textile recycling facility in France. The new facility is expected to significantly increase Circ’s recycling capacity and further solidify its position as a leader in textile recycling technology and the circular fashion movement.